Which of the Following Is a Breach of Fiduciary Duty

question 6

Multiple Choice

Which of the following is a breach of fiduciary duty?

• A)A broker recommends to his client that he buy shares of a company without telling the client that he (the broker)is being paid by the company to promote it.
• B)A broker recommends to his client that he buy shares of a company without telling the client that he (the broker)owns shares in that company.
• C)A broker recommends to his client that he use a particular lending institution to finance the purchase without telling the client that he (the broker)gets referrals from the institution in return.
• D)Both A and B
• E)All of the above

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Definitions:

Equilibrium Value

The price or point at which supply and demand for a good or service are equal, leading to market stability.

Price Level

The average price for every good and service within the current economic landscape.

Hyperinflations

An extremely high and typically accelerating inflation rate, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency and causing the population to minimize their holdings of the local money.

Money Growth

An increase in the amount of money in circulation or in the overall money supply within an economy.